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EURUSD

The euro is steady ahead of FOMC's Interest Rate Decision later today.

Yesterday's rebound suggests that the corrective cycle could be over and we are now heading towards the recent top side at 1.4340.

Due to the 280 points rally, the euro managed to breach above important upside barriers on yesterday - first around 1.4000/10 formed by last week's high along with the downward trend-line extended through previous 3 weeks' tops which came around 1.3970 then 2'nd barrier formed by the median retracement of the 1.4340-1.3750 down leg, at.14045.

Current recovery has been limited by the 61.8% retracement of the mentioned down-leg, at 1.4115.

On potential pullbacks, support is expected to react into the 1.3970-1.4000 region, or otherwise the euro will extended losses back into the 1.38-1.39 region.

USD/JPY OUTLOOK -  95.10

Although dlr's o/n selloff to 94.88 after early strg rebound to 95.89 signals recent 'erratic' fall remains in force n as long as 95.51 (previous sup) holds, a re-test of said sup is likely, loss of momentum shud keep price abv 94.44 in Asia.

Wud not advise chasing present decline as abv 95.55/60 wud indicate low is formed, 95.89 again...

Range Forecast

95.00 / 95.35

Resistance/Support

R: 95.89/96.28/96.76

S: 94.88/94.44/93.85

EURUSD

The euro dipped below the 1.3880 support on yesterday - the median retracement level of the 1.3455-1.4340 up leg, weakening the short-term sentiment which will remain bearish as long as the 1.4000 mark is safe from a potential breach on the upside.

Price action suggests further weakness, aiming to 1.3800 on first phase, then lower - to 1.3750/75 which is a support region formed by previous week's low and the 61.8% retracement of the 1.3455-1.4340 move.

On a potential recovery, first intra-day resistance is seen at 1.3900 followed by 1.3950 and the key barrier at 1.4000/10.

Current quote is 1.3834 @06:00 GMT

Support levels: 1.3820/30, 1.3750/75 and 1.3700

Resistance levels: 1.3900, 1.3950, 1.4000/10 and 1.4120/35

Market sentiment: long-term : bearish, mid-term : bullish, short-term : slightly bearish

EURJPY

EURJPY as expected moved lower and closed @ 13295 which was below the open.

The Hourly Oscillators are bearish and price is below the MA, so the bulls have to be Sidelined.

Hourly Trend is Sideways Down and Daily Trend is also Sideways Down, so expect the price to make lower lows.

A slew of data is out from the Euro Zone.

The patterns are pointing lower but any pull back would be a good short while 13330 level holds.

We prefer to be Cautiously Short while 13330 level holds or strictly trade at only our levels.